Revenue in the third quarter of 2012 of $2,576,729 increased by 5% over revenue of $2,447,674 in the third quarter of 2011. Revenue from Edict Systems increased by 7% and revenue from Merkur Group decreased by 3% compared to the third quarter in 2011.

Net income in the third quarter of 2012 increased by 22% and was $556,737, or $.008 per share, compared to net income of $455,542, or $.007 per share, in the same period in 2011.

Adjustments to reconcile net income to net cash flows from operating activities:

Depreciation

85,998

114,861

Amortization of software development costs

87,368

58,244

Amortization of other intangible assets

57,035

63,534

Loss on disposal of assets

195

—

Deferred income taxes

(66,822 )

(96,849 )

Increase (decrease) in cash and cash equivalents arising from changes in assets and liabilities:

Accounts receivable

(142,552)

(9,384)

Prepaid software maintenance costs

(31,933 )

(34,541 )

Prepaid expenses and deposits

22,502

29,967

Prepaid income taxes

1,910

—

Accounts payable

70,755

77,195

Income taxes payable

27,934

(223)

Accrued salaries and other expenses

80,693

160,395

Deferred revenue

119,554

136,520

Net cash flows from operating activities

1,761,086

1,732,808

Cash flows from investing activities:

Purchases of property and equipment

(106,651 )

(34,691 )

Software development costs

—

(40,636)

Net cash flows from investing activities

(106,651)

(75,327)

Cash flows from financing activities:

Dividends paid

—

(667,226)

Net increase in cash and cash equivalents

1,654,435

990,255

Cash and cash equivalents, beginning of period

3,459,402

2,963,172

Cash and cash equivalents, end of period

$ 5,113,837

3,953,427

Supplemental disclosures of cash flow items:

Income taxes paid

$ 785,000

735,000

Non-cash transactions:

Declared dividends payable no later than December 31, 2011

—

667,226

The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.

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